Ancala completes Apache’s North Sea pipeline stake buy
Ancala Midstream has completed the acquisition of Apache’s interests in the Scottish Area Gas Evacuation (SAGE) System and the Beryl Gas Pipeline for an undisclosed sum. Ancala Midstream has been appointed as operator of both systems.
Under the deal, originally announced in November 2016, Ancala Midstream has acquired 100% of SAGE North Sea Limited (SNSL) which holds Apache’s 30.28% share of SAGE and 60.58% share of the Beryl Pipeline. SNSL will operate as a 100%-owned subsidiary of Ancala Midstream.
The SAGE System comprises a 323-kilometer, 30-inch bore pipeline and a gas processing terminal located at St Fergus, 65 kilometres north of Aberdeen. Gas is transported through the SAGE pipeline and processed in the SAGE Terminal from nine gas fields, including the Beryl Field and its satellites.
Jim Halliday, Chief Executive, Ancala Midstream, said: “Ancala Midstream is delighted to have closed this important investment in two major pieces of North Sea infrastructure. It is critical for the commercial future of the North Sea that complex transactions of this type can be successfully concluded. The injection of significant new capital is also essential for the future of the basin. For Ancala Midstream this investment provides a platform for further growth in the sector.”
Ancala has appointed Wood as its operating partner. Wood will undertake operations on behalf of Ancala Midstream at the SAGE Terminal and on the SAGE and Beryl Pipelines. Apache’s 60 employees at the SAGE Terminal have transferred to Wood.
Tom Wheeler, Director of Regulation, Oil and Gas Authority, expressed strong support for the investment: “This transaction clearly demonstrates that ‘right assets, right hands’ is working. We welcome Ancala Midstream’s commitment and the message it sends to the wider investment community.”